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Insight Presentation To Email (Converted)

1.
IINNSSIIGGHHTT CCOONNSSUULLTTAANNTTSS AANNDD AADDVVIISSOORRSS,, LLLLCC
To: Mr. XXXX XXXXXX
Re: Investigative Reporting – Bank of America Investment Account
Dear Mr. XXXXXXXX,
Insight Consultants and Advisors, LLC has completed reviewing your account documentation that you
have provided and have performed the accounting and research to come up with the following:
• Your account has suffered a cumulative loss since inception of $219,542 equal to a 36% loss on a
starting balance of $609,801
• Your annualized loss is 16.61% (unrealized) derived from February 28, 2007 through April 30,
2009
• To reach your original invested amount of $609,801 your account will need to generate the
following returns over the corresponding periods of time:
o 8.50 years at 6% compounded return
o 6.50 years at 8% compounded return
o 5.40 years at 10% compounded return
o 4.70 years at 12% compounded return
o 3.80 years at 15% compounded return
o 2.80 years at 20% compounded return
o 2.40 years at 25% compounded return
Based on our interviews with you and your preference for conservative no risk investments, and taking
into account the current interest rate environment, a number of approximately 3.25% (pre-tax) would
be the comparative number using the current yield on the 10 year Treasury Note.
After reviewing the emails between yourself and your representative, the actual purchases, amounts
and types of products purchased, there are several points of concern that we would like to point your
attention to.

2.
IINNSSIIGGHHTT CCOONNSSUULLTTAANNTTSS AANNDD AADDVVIISSOORRSS,, LLLLCC
Background Summary and Narrative
All assumptions contained within this summary are based upon information provided by Mr. XXXXXX
during interviews with Insight Consultants and Advisors, LLC during the months of April 2009 and May
2009. All figures are based on account statements, correspondence and other documentation provided
by Mr. XXXXXXX.
In 2007, Mr. XXXXXXX was solicited by Premier Banking Services at Bank of America to begin an all
encompassing banking relationship with money that he had recently come into from the operation of
his business.
Mr. XXXXXXX was solicited to transfer his money from his current FDIC Insured checking and savings
accounts into a brokerage account held at Banc of America Investment Services, Inc. This was done in
January of 2007 when Mr. XXXXXXX began a relationship with Mr. XXXXXXXX, Vice President of
Investments. Up to this point, Mr. XXXXXXX has stated that he had never invested in equity or bond
markets at any time and has never owned stocks, bonds, mutual funds or any other type of investments
outside of his employer retirement plan.
Mr. XXXXXX has stated in interviews with Insight that he specifically told his representative that he
wanted a “no-risk, interest bearing account, such as a CD or Money Market account.” He further stated
that he could have placed his money in a Lebanese Bank and received between 7% and 8% APY on his
funds but was willing to take less to have the money in the United States with a large banking
institution.
Beginning in February 28, 2007 and ending May 8th
, 2007 the following purchases occurred in Mr.
XXXXXXX’ account:
Citigroup Capital Trust XVII Preferred e $ 209,800
First Trust Closed End Municipal Unit Investment Trust $ 200,001
First Trust Dividend Income Unit Investment Trust $ 100,000
Eaton Vance Large Cap Growth, Class B share $ 25,000
Goldman Sachs Equity Growth Portfolio, Class A share $ 75,000

3.
IINNSSIIGGHHTT CCOONNSSUULLTTAANNTTSS AANNDD AADDVVIISSOORRSS,, LLLLCC
During the period of January 2007 and April 2009, Mr. XXXXXXX’ accounts suffered principal losses,
inclusive of dividends earned and reinvested, in the amount of $219,542.
During the same period, Mr. XXXXXXX’ presumed interest, not earned, (using Banc of America
Investment Services Money Market average effective 7 day yield throughout) was equal to $43,193.
This brings the total losses inclusive of opportunity costs $262,734.
It is important to note that these numbers are also net of the market recovery that has occurred since
the lows set on March 9th
, 2009. In fact Mr. XXXXXXX’ account’s low point based on statements
provided by Banc of America Invest Services, Inc. and not inclusive of opportunity costs was $274,720 or
a cumulative stated loss of 45.05%.

4.
IINNSSIIGGHHTT CCOONNSSUULLTTAANNTTSS AANNDD AADDVVIISSOORRSS,, LLLLCC
Sampled Supporting Documentation
The investment vehicles that were placed into Mr. XXXXXXX’ account; were subsequently questioned by
Mr. XXXXXXX in email form, addressed to Mr. XXXXXXX commencing on May 18, 2007.
Sent: Friday, May 18, 2007 4:47 AM
To:
XXXXXXX@bankofamerica.com
Attachments:
Hi XXXXXX,
I noticed that the value of the account is decreasing.
I thought the money is placed in a 6% or so earning mode.
If it loses value, what is the meaning of the 6% number here?
XXXXX.
Based on the email documentation provided by Mr. XXXXXXX, there was neither a verbal or written
response provided with an answer to his questions about his holdings at this time. Subsequent emails
sent by Mr. XXXXXXX follow a similar theme with even more fearful and specific questions to Mr. XXXXX
regarding his account:
Sent: Friday, June 08, 2007 10:41 AM
To: XXXXXX@bankofamerica.com
Attachments:
Hi XXXXX,
I have sent you a couple of email asking for clarifications about the account
and still have not heard back. The account is quickly losing money and I would like
to understand how the whole thing works. Specifically, I would like to understand
how the quoted 6% interest comes into play, and what the chance are that the account
loses money over a year's period. If I don't hear back from you soon, I
would be inclined to withdraw the money and place it in a more secure place. Please answer as soon as
possible.Thanks,

5.
IINNSSIIGGHHTT CCOONNSSUULLTTAANNTTSS AANNDD AADDVVIISSOORRSS,, LLLLCC
Furthermore, Mr. XXXXXXX goes on to state to Mr. Dowd that he is gravely concerned about fluctuation,
loss of principal and the guarantees he was presented with by his Mr. XXXX:
“….however, the size of these fluctuations has reached 3.5% in the downturn in less than 3 days and
there is no guarantee that it would turn around. I have a couple of specific questions that I would like
answered:
1- If the account pays 6%, when should I expect these payments to occur?
2- What happens if I decide to withdraw the money before the payment is due?
Do I still get any interest payment?
3- Is it possible for the account to lose money over a year's time counting fluctuation
and interest payment together.
As you know, I am interested in the least amount of risk for this first batch of money.
If there is a likelyhood that a significant amount of it gets lost, I would be inclined to
remove it from the brokerage account.” (June 8
th
, 2007, 11:26a.m.) see attached

6.
IINNSSIIGGHHTT CCOONNSSUULLTTAANNTTSS AANNDD AADDVVIISSOORRSS,, LLLLCC
Areas of Concern and Statements of Fact:
• Account Opening Profile and any subsequent changes are imperative to determine Investment
Suitability, Risk Level, Time Horizon and Investment Experience
o Request Copies of all Account Opening Documentation and any profile updates for
comparison
• Money was transferred from FDIC Insured accounts into Non-FDIC Insured, non-guaranteed
brokerage account under the assumption of a fixed 6% APY return.
o It is important to note that Mr. XXXXXXX’ account did not even contain an FDIC option,
which is available for his cash reserves.
• Correspondence between Mr. XXXXXXX and Mr. XXXXX went unanswered numerous times and
specific investment related questions were not answered for periods up to three weeks. Market
volatility at that time dictates prompt, immediate response to clients. Representative also
appears to have sent unapproved correspondence to Mr. XXXXXXX.
o Possible negligence on representative’s behalf in not forwarding what could be
construed as written client complaint to immediate OSJ
o Representative provided unapproved email correspondence that contained unapproved
market commentary and a representation that
“The federal reserve meets next week, and I am expecting some relief from
this sell off then. There is no guarantee we will get it, but I do expect to
see prices rally back after their meeting. (June13, 209:46 a.m.) see
attached
• Possible Faliure to Supervise by OSJ should be looked into
o Request Copies of Incoming and Outgoing Correspondence logs from Representative
and compare to OSJ files
o Request Verbal and Written Complaint files for same
• Income style investments were presented as bonds (see email) when in fact no bonds exist in
portfolio

7.
IINNSSIIGGHHTT CCOONNSSUULLTTAANNTTSS AANNDD AADDVVIISSOORRSS,, LLLLCC
• Role of Principal transactions, markups, commissions, fees, loads and Deferred Sales Charges,
never disclosed to client, even when multiple, specific requests are made by client. Commissions
in excess of $20,000 believed to have occurred.
o Possible misrepresentation and non use of proper disclosures
• Questionable Mutual fund buys by representative
o Growth-oriented, non income producing investments purchased
o Did not utilize letter of intent, Rights of Accumulation, or maximize breakpoints
available to client
o $75,000 Goldman Sachs A share purchased with load – not disclosed
o $25,000 Same Day purchase of B share mutual fund – surrender charges not disclosed
o Different Fund Families utilized to increase commission for representative
• Expenses on Unit Investment Trusts not explained or disclosed, approximate expenses of 5%
including load per share and deferred sales charges (see attached)
• Longer term, illiquid, higher commissioned products chosen versus alternatives available
• Client specifically demands instruction on how to close account, no further orders to be placed
without specific direction of Mr. XXXXXXX suggests discretionary abuse in past purchases
• Even after wanting to close account, demanding explanations, client never received a
Supervisory call
• Failure to disclose that Citigroup Capital Trust XVII is not a bond, nor a direct preferred of
Citigroup, thus leaving Mr. Kyriakos unprotected as a bond holder would be, should company
default or declare bankruptcy
• Mr. XXXXXXX has never before invested in stock markets of any kind prior to account opening
• Representative shows client dispute on U4 in past

8.
IINNSSIIGGHHTT CCOONNSSUULLTTAANNTTSS AANNDD AADDVVIISSOORRSS,, LLLLCC
Conclusion
It is the opinion formed from this information, of Insight Consultants and Advisors, LLC that multiple
instances of product misrepresentation occurred in Mr. XXXXXXX’ account held at Banc of America
Investment Services, Inc.
It is also our opinion that a Failure to Supervise by the OSJ occurred throughout the duration of the
account and should be investigated further.
It is also our opinion that numerous incidents regarding expenses, commissions, mark-ups and general
product purchases occurred at a severe disservice to Mr. XXXXXXX and should be investigated further.
It is also our opinion that transactions occurred in an unauthorized manner on behalf of the client
without proper discretionary agreements in place and should be investigated as well.
Lastly, the disregard for a client’s written, multiple and specific questions during a time of severe market
volatility presents a possible negligent breach of fiduciary responsibility and should be included in any
future action pursued on behalf of Mr. XXXXXXX.
Adam J. Allison,
Managing Member
Insight Consultants and Advisors, LLC
Todd M. Lawrence,
Managing Member,
Insight Consultants and Advisors, LLC
Enclosures Attached